Auto sales slowed in May amidst natural disaster recovery in Japan


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Car sales in the U.S. were expected to drop in May as prices for gas fell, Bloomberg reports .

Two top Japanese automakers that are attempting to bounce back from early March natural disasters also played a role in May's reduced sales figures. Both Honda (HMC) and Toyota (TM) saw lower sales of their fuel-efficient models.

"Consumers were being told so dramatically after Japan that there's going to be a shortage of cars, but this is going to be a temporary situation and so many of them will just wait," Alan Baum, principal of industry consultant Baum & Associates, told the news service. "To the extent May is a reasonably poor month, I'm not going to get carried away and say that's going to transcend through the rest of the year."

Baum, who predicted 2011 auto sales in the U.S. will run as high as 13 million, also noted the upgraded pick-ups from Ford ( F ) are performing well against General Motor ( GM ) trucks - the Chevrolet Silverado and GMC Sierras.

June production from Toyota will be 90 percent of its normal capacity, the automaker told the Wall Street Journal.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: News Headlines Business
Referenced Stocks: F , GM

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